Oil Price Surge Fuels Market Selloff Amid Iran Strikes

The stock market took another hit on Tuesday as U.S. military strikes on Iran sent oil prices soaring, fueling worries about stubbornly high inflation.

The S&P 500 index fell 0.7%, the Dow Jones Industrial Average dropped 0.8%, and the Nasdaq composite slid 1%. The major indexes have lost ground for three days in a row.

The bond market sell-off deepened, putting more pressure on stocks. The yield on the 10-year Treasury rose to 4.79% from 4.75% late Monday, while the yield on the 2-year Treasury climbed to 4.39% from 4.34%.

The higher yields signal that investors are demanding a higher return from Treasurys due to growing government debt and increasing borrowing costs.